According to Shanghai Metals Market, Northern Solar recently signed contracts for two solar PV projects, with capacities of 100MWac and 89MWac, respectively. The projects will supply renewable electricity to two data centers in Malaysia. The two data centers are expected to consume nearly 500GWh of electricity combined each year.

The two contracts cover a total of 189MWac of solar PV capacity, showing a direct link between data center electricity demand and renewable energy project development. For solar PV projects, data center power demand provides a clear use case. For data centers, how to align solar power generation with their own electricity consumption is an issue to watch going forward.

It is important to distinguish between the two figures: 189MWac is the project capacity, while nearly 500GWh is the two data centers’ expected annual electricity consumption. They cannot be compared directly. Actual project generation, power supply arrangements, and the share of the data centers’ electricity consumption met by solar power will affect the projects’ ultimate contribution.

This case also offers a point of reference for observing how data center electricity demand in Malaysia and Southeast Asia may drive solar and energy storage projects. Whether energy storage will play a role in these projects, and whether similar demand can continue to translate into project contracts, remain to be seen as developments unfold.